The CFPB recently released its Fall 2014 Supervisory Highlights report, which details recent findings from CFPB exams of providers of consumer financial products and services. One of most cited regulatory issues continues to be violations deemed unfair, abusive, or deceptive acts or practices (UDAAP). The report highlighted those found in […]
Banking Update
Clawback Actions In Bankruptcy: Three Ideas for a Defendant
on Friday, 12 December 2014 in
Banking Update
A bankruptcy case gives rise to certain rights under Chapter 5 of United States Bankruptcy Code. Chapter 5 causes of action are typically pursued by a bankruptcy trustee or a debtor-in-possession, a bankruptcy term for a bankrupt in a reorganization bankruptcy who has not been displaced by a trustee. These […]
CFPB’s NPR Proposes Detailed Requirements for Prepaid Providers
on Friday, 5 December 2014 in
Banking Update
On November 13, 2014, the Consumer Financial Protection Bureau (“CFPB”) issued a Notice of Proposed Rulemaking (“NPR”) proposing new federal rules for prepaid accounts. The NPR contains extremely detailed requirements regarding required disclosures, consumer protections, and credit features. Moreover, the products covered by these requirements are extremely broad, encompassing not […]
FinCen Proposes Expanded CDD Requirements for Financial Institutions
on Monday, 24 November 2014 in
Banking Update
On August 4, 2014, the Financial Crimes Enforcement Network (“FinCen”) issued a notice of proposed rulemaking (“NPRM”) regarding the expansion of certain customer due diligence (“CDD”) requirements for, among other entities, financial institutions. Specifically, in its NPRM, FinCen proposed a requirement for financial institutions to identify and verify the identity […]
8th Circuit Disagrees with 6th Circuit – Spouse-Guarantor Cannot Assert ECOA Claim as an Affirmative Defense to Collection Action
on Monday, 17 November 2014 in
Banking Update
The Eighth Circuit Court of Appeals recently held that a spouse-guarantor cannot use the Equal Credit Opportunity Act (“ECOA”) as an affirmative defense to a collection action based on their guaranty. I. ECOA Prohibits Discrimination Against “Applicants” Based On Marital Status A. ECOA bans creditor from requiring a spouse to […]
